Written by IDS Alum, Bernado Mendez Lugo (MPhil, Class of 1981) and Rafael Pulido this paper discusses different aspects of labor training in Mexico. In the first section an overview of the school-to-work transition is presented and general data on labor force educational profile is provided. A review of recent experiences at the National College of Professional Studies (CONALEP) illustrates the limits and contradictions for linking technical education with the world of employment. The controversial discussion about the role of universities and paradoxes between social needs and market production is examined, taking into consideration the paradoxes between social needs and market production, according to different approaches provided by the OECD reports on university, science and technology as well as partnerships with private sector firms. The second section analyses the social implications of School-to-Work policies, in order to evaluate some features of two training programs supported by STPS (Ministry of Labor). The third section is a more macro analysis of Mexican economic structure and its influence on labor behavior, especially the lack of incentives for workers to participate as formal employees. The final section consists of the policy recommendations in the Mexican case and suggestions for policy-making in other countries.